Automotive Drive Shaft Market Size - By Shaft, Position, Design Structure, Material, Vehicle, Propulsion, Sales Channel, Growth Forecast, 2026 – 2035

Automotive Drive Shaft Market Size

The global automotive drive shaft market was valued at USD 11.8 billion in 2025. The market is expected to grow from USD 12.3 billion in 2026 to USD 18.9 billion in 2035 at a CAGR of 4.9%, according to latest report published by Global Market Insights Inc.

Continuous growth in vehicle production, including passenger cars and commercial vehicles, is supporting the market. As much as the requirement of vehicles will increase, it will reflect more production that will significantly increase the need for shafts. As driver shafts are one of the major automotive parts, without this, a driveline and transmission are incomplete.
 

Sport utility vehicle (SUV) sales show consumers perspective on 4-wheel drive or all-wheel drive drivetrains. In January 2026, the Volkswagen released the sales results for 2025, in which SUVs maintained their strong position in the brand’s model mix. They accounted for 50.2 percent of Volkswagen’s total deliveries, an increase of 5.3 percent year-on-year. In the United States, over 78.5 percent of Volkswagen models sold were SUVs.
 

Meanwhile, production of passenger cars experienced growth of around 5.5 percent in the first three-quarters of 2025 as compared to the same period of 2024. It resulted in over 50 million cars being produced in the first three-quarters of 2025.
 

Market leaders are also innovating drive shafts to continue to hold their market positions. For instance, in April 2025, Nexteer Automotive debuts three driveline technologies engineered to meet the unique demands of EVs, as well as premium driving experiences across all propulsion types. As the world is now moving ahead with EVs or hybrid vehicles, the introduction of EV drive shafts will see significant growth in terms of revenue.
 

Geographically, the Asia Pacific will remain dominant in the near future because of the high demand for vehicles in the region, resulting in a major presence of automakers in the region. China, India, and South Asian countries like Vietnam, Thailand, Malaysia, and Indonesia have marked so many announcements related to new production facilities. The majority of those plants will be dedicated to EV production. This suggests the coming years will see the increased demand for EV & hybrid drive shafts.
 

Automotive Drive Shaft Market Trends

The market is growing as global vehicle production increases and more vehicles become electric. This growth is supported by the rising production of passenger and commercial vehicles. The shift to electric and hybrid vehicles is creating demand for drive shafts that can handle specific torque needs and fit new powertrain designs.
 

Manufacturers are innovating drive shafts by using lightweight materials like aluminum and carbon fiber composites. These materials are lighter than steel, which helps improve fuel efficiency, handling, and performance. Strict emission rules and fuel economy standards are encouraging the use of these advanced materials. As a result, more advanced material drive shafts are being used, especially in Europe and North America.
 

The aftermarket segment is an important part of the drive shaft market. As vehicles get older and need replacements, demand for aftermarket drive shafts, including steel and advanced material types, is growing. Online sales of these parts are also increasing, especially in North America. This gives suppliers new ways to earn money beyond selling to OEMs.
 

Asia-Pacific leads the market due to high vehicle production in countries like China, India, and Southeast Asia. North America and Europe are also important, driven by the growing use of electric vehicles and luxury cars that need advanced, lightweight drive shafts. Investments in regional manufacturing, like new production centers and local supply chains, are helping companies reduce lead times and manage raw material costs, even as steel and composite prices remain unstable.
 

The market is growing but still has some challenges. Battery electric vehicles (BEVs) often use different drivetrain systems that reduce or remove the need for traditional drive shafts, which might lower demand in some areas. Higher costs of raw materials like steel and carbon fiber are also making it harder for manufacturers.
 

Automotive Drive Shaft Market Analysis

Based on shaft, the automotive drive shaft market is divided into single-piece drive shaft, two-piece drive shaft and slip-in-tube drive shaft. The two-piece drive shaft segment dominated the market with market share of around 45% and generating revenue of around USD 5.3 billion in 2025.
 

• A two-piece drive shaft is a longitudinal assembly split into two separate sections, connected by a center support bearing. This design is the industry standard for vehicles where the distance between the transmission and the rear axle is too great for a single, solid tube to operate safely. These shafts are commonly used in trucks, SUVs, and commercial vehicles, which are in high demand worldwide.
   
• Another reason is that two-piece drive shafts are easier to install and maintain. They are modular, meaning they can be assembled in sections, which makes transportation, handling, and part replacement simpler. This reduces downtime for fleet vehicles and commercial trucks, which is important for businesses that rely on keeping their vehicles running. Because of this, manufacturers and suppliers prefer two-piece shafts for their practicality and cost savings.
   

Based on position, the market is divided into front axle drive shaft and rear axle drive shaft. The rear axle drive shaft segment accounts for 57.8% in 2025 and is expected to reach USD 10.3 billion by 2035.
 

• At present, rear-wheel drive (RWD) and all-wheel drive (AWD) systems are common in passenger cars, SUVs, and commercial vehicles. These systems need strong rear axle drive shafts to transfer torque from the transmission to the rear wheels. Therefore, the rear axle drive shaft segment is the largest in terms of revenue generated in 2025, which was valued at USD 6.8 billion.
   
• Many automotive OEMs have reported growth with these axle drives, as these rear axle drive shafts in RWD systems have fewer design challenges compared to front axle shafts, which must account for steering and suspension.
   
• SUVs, pickups, and vans are mostly built with rear axle drive systems, which are popular in markets such as North America and Asia-Pacific.
   
• In the projected period, front axle drive shafts are expected to grow the fastest, with a CAGR of 5.6% from 2026 to 2035. Supporting the trend, there are players who are now focusing on front-wheel drive systems.
   
• For example, Porsche plans to launch its first front-biased SUV, the M1, in 2028. This reflects a broader trend where automakers are adopting FWD systems to improve fuel efficiency, reduce weight, and make better use of space in smaller vehicles.
   

Based on propulsion, the automotive drive shaft market is divided into internal combustion engine (ICE) and EV & hybrid. The EV & hybrid segment is expected to grow at the fastest CAGR of 5.3% between 2026 and 2035.
 

• The world has a clear roadmap towards EVs or hybrids. Many regions have already set targets to achieve zero-emission vehicles on the road to reduce the carbon emission.
   
• Following the trend, the IEA stated that global sales of electric cars are expected to surpass 20 million in 2025 as per the released quarter results, accounting for over a quarter of cars sold worldwide.
   
• Manufacturers of drive shafts need to focus on shafts tailored for EV and hybrid models. As the world is experiencing growth in EVs, the ratio within per ten car owners is increasing.
   
• However, dominance of the ICE segment will remain the same in the projected period. The segment is expected to reach USD 11.8 billion in 2035. Their dominance is reinforced by ongoing demand in regions where ICE vehicles remain cost-effective and fuel infrastructure is well-developed.
   

• In the U.S., companies are using lightweight materials and new manufacturing methods. OEMs and Tier 1 suppliers are choosing materials like aluminum and carbon fiber for drive shafts because they are strong and light.
   
• This helps vehicles use less fuel and work better. Rules like the Corporate Average Fuel Economy (CAFE) standards are pushing companies to make vehicles lighter and cut emissions.
   
• The Department of Energy says lightweight materials can make vehicles more efficient. For example, cutting a vehicle’s weight by 10% can improve fuel economy by 6%-8%. Because of this, companies are already using lightweight materials in car parts.
   
• In April 2025, Savage and Symbio North America announced a partnership to launch hydrogen fuel cell vehicles for drayage. Their new design is the lightest, smallest, and most cost-effective hydrogen fuel cell driveline for this purpose.
   

The North America region is estimated to reach USD 2.2 billion by 2035 by growing at the CAGR of 4.1% between 2026 and 2035.
 

• Rules in the U.S. and Canada are changing how drivetrain parts, like drive shafts, are made to improve fuel efficiency and cut emissions. A recent report from the U.S. Environmental Protection Agency (EPA) shows that new technologies are helping vehicles use less fuel and create less pollution.
   
• The same report also shows a move toward electric and hybrid vehicles, which is changing the need for and design of drive shafts. As more vehicles use electric powertrains, carmakers and suppliers are updating how they design drive shafts.
   
• Groups like the Alliance for Automotive Innovation and the Motor & Equipment Manufacturers Association (MEMA) are working to lower emissions and support new ideas in the car industry. MEMA represents many suppliers that make parts like drive shafts for carmakers and the aftermarket.
   
• These groups help the industry by promoting teamwork, research, and sharing data. This leads to new ideas in materials, manufacturing, and drivetrain technologies.
   

The Europe region holds 17.1% of the automotive drive shaft market in 2025 and is expected to grow at the fastest CAGR of 6.1% between 2026 and 2035.
 

• The EU has changed its rules, requiring new cars to cut CO? emissions by 90% by 2035 compared to 2021 levels. This is different from the earlier plan to completely ban internal combustion engines (ICEs). The new rules encourage the use of hybrid and electric powertrains but still allow plug-in hybrids and efficient ICEs by using low-carbon fuels and offsets.
   
• Since the EU’s 90% CO? reduction target allows a mix of electrified, hybrid, and efficient ICE vehicles after 2035, manufacturers and suppliers in Europe are investing in flexible drive shaft technologies. Automakers in Germany, Italy, and France, which are major automotive hubs, are working on drive shafts that can be used with traditional, hybrid, and fully electric powertrains.
   
• In February 2025, American Axle & Manufacturing (AAM) announced its strategic entry into vehicle electrification. AAM created a high-performance electric drive unit (EDU) that powers the Jaguar I-PACE. These systems were made at AAM's ?widnica factory in Poland. This EDU marked AAM's first step into electrification and showed it can compete with top companies in the automotive market.
   

Germany's automotive drive shaft market is growing quickly in Europe, with a CAGR of 7.8% between 2026 and 2035.
 

• Vehicle production in Germany is increasing the demand for drive shafts in the automotive market. According to OICA statistics, domestic passenger car production went up by 2% in the first three quarters of 2025 compared to the same time in 2024. This shows that Germany’s car manufacturing is still strong.
   
• This rise in production is creating more demand for drive shafts in both traditional internal combustion engine (ICE) vehicles and electric vehicles (EVs). Car makers are keeping up production while adjusting to new powertrain technologies.
   
• Germany’s role as a key production hub for global car makers also affects the drive shaft market. For example, BMW made over one million cars in Germany in 2025, which was about 25% of all cars built in the country that year. High production levels from companies like BMW are driving demand for both traditional and advanced drive shaft technologies used in ICE, hybrid, and EV drivetrains.
   

The Asia Pacific region holds the largest share, around 58%, in the automotive drive shaft market in 2025.
 

• The region holds the largest portion because the region is continuously being the central focus of automakers. Many automakers are opening facilities in the region. As a result, in 2025, the region is valued at USD 6.9 billion, showing continuous growth in the projected period between 2026 and 2035, growing at 5% CAGR.
   
• China’s massive vehicle production and India’s fast-growing automotive industry are key factors. The involvement of OEMs also increases the need for both traditional and advanced driveline components for different types of vehicles.
   
• The increasing use of electric and hybrid vehicles (EVs and HEVs) is also changing the automotive market in Asia Pacific. China, which leads the world in EV production, is updating driveshaft designs to meet the needs of electric powertrains. These designs can handle high torque and improve NVH (noise, vibration, harshness) performance, which is important for EVs and hybrids.
   

China is estimated to grow with a CAGR of 5.5% in the projected period between 2026 and 2035, in the Asia Pacific automotive drive shaft market.
 

• China is the largest car producer in the world, and its strong manufacturing activity is increasing the demand for important drivetrain parts like drive shafts. According to the ACEA, China holds over 31% of global car sales. This dominance has also led to higher production of transmission components to keep up with demand.
   
• Additionally, China is also a global leader in electric vehicle (EV) production, and the move to electric powertrains is changing how drive shafts are designed. Government support for new energy vehicles and the fast growth of EV manufacturing have increased the use of hybrid and electric drivetrains, which need specialized driveline solutions.
   
• China’s car industry is focusing on making more drivetrain parts, like drive shafts, locally as part of its "Made in China 2025" plan and other national strategies. These efforts aim to reduce dependence on imports and build strong local suppliers that meet global standards.
   

Latin America automotive drive shaft market is estimated to reach USD 948 million in 2025 and is anticipated to show lucrative growth over the forecast period.
 

• In the region, the demand for drive shafts depends heavily on vehicle production and export activities in the region. Brazil and Mexico are key automotive production hubs, and changes in their output and cross-border sales directly affect the need for drivetrain components. For example, in 2025, Brazil's automakers' association (Anfavea) reported a big increase in vehicle exports from Brazil to Argentina.
   
• This rise helped balance slower local sales, leading to a significant year-on-year growth in shipments. This increase in production and exports highlights the continued need for traditional drivetrain parts like drive shafts to meet the requirements of OEMs for passenger and commercial vehicles.
   
• EV sales are rising in the region, with affordable models from Chinese manufacturers gaining popularity in countries like Brazil, Chile, and Uruguay. As a result, suppliers are adjusting drive shaft designs to handle the unique torque and space requirements of electric motors.
   

Brazil is estimated to grow with a CAGR of 4.2% between 2026 and 2035, in the Latin America automotive drive shaft market.
 

• According to the Brazilian automakers' association, Anfavea, vehicle sales in Brazil reached a 10-year high in 2024 which is expected to grow further in 2025, with more light vehicles and commercial models being made.
   
• This strong production and export activity drives steady demand for drivetrain parts like drive shafts, which are essential for traditional powertrains in cars, pickups, and trucks. Higher production and exports support parts manufacturing, keep assembly lines running, and involve suppliers in driveline products.
   
• Brazil’s automotive industry is exporting more electrified and hybrid vehicles as imports and local assembly increase, especially with Chinese and other global brands entering the market. This shift is creating demand for drive shafts and components designed for the unique needs of hybrid and electric powertrains.
   

The Middle East and Africa accounted for USD 466 million in 2025 and is anticipated to show lucrative growth over the forecast period.
 

• In the MEA region, countries like the UAE, Morocco, and South Africa are increasing automotive production and assembly, which is driving demand for drivetrain components like drive shafts.
   
• Stellantis is expanding its vehicle production at the Kenitra plant in Morocco, increasing output for both traditional and electric vehicles. The company is also sourcing more automotive parts locally, strengthening the regional supply chain for components like drive shafts.
   
• Electrified vehicles are slowly becoming more popular in the MEA, leading to a shift toward hybrid and electric powertrains. This change is affecting how drive shafts and related components are designed. Nissan’s work on hybrid technology in South Africa shows this transition. Hybrids are seen as a bridge between traditional combustion engines and fully electric vehicles, especially with current infrastructure challenges.
   
• In areas like the Gulf and South Africa, where interest in EVs is growing, driveline suppliers are preparing for more hybrid and electric vehicles. These systems need different torque handling and integration features compared to older systems.
   

UAE to experience substantial growth in the Middle East and Africa automotive drive shaft market in 2025.
 

• The UAE government, through plans like the UAE Energy Strategy 2050 and the National Electric Vehicle Strategy, aims for 50% of vehicles on its roads to be electric or hybrid by 2050. This change requires drivetrain parts, such as drive shafts, to be redesigned to handle different torque, work with electric motors, and fit new designs compared to traditional internal combustion engine (ICE) vehicles.
   
• In the UAE, consumers prefer premium, luxury, and high-tech vehicles, which increases the demand for high-quality drivetrain parts. Popular brands like Mercedes-Benz, BMW, Audi, and Tesla dominate the market. Buyers in the UAE value performance, advanced technology, and smooth driving experiences.
   
• This demand drives the need for top-notch drive shafts that ensure smooth power delivery and reduce noise, vibration, and harshness (NVH). The popularity of luxury and performance vehicles in the UAE highlights the importance of strong drivetrain designs and good aftermarket support.
   

Automotive Drive Shaft Market Share

• The top 7 companies in the automotive drive shaft market are American Axle & Manufacturing, Dana, GKN Automotive, IFA, JTEKT, Nexteer Automotive, NTN Corporation contributing 66.2% of the market in 2025.
   
• American Axle & Manufacturing makes automotive drive shafts and driveline systems. These include propeller shafts and axle-connected shafts, mainly used in rear-wheel-drive and all-wheel-drive passenger cars, light trucks, and commercial vehicles.
   
• Dana makes automotive drive shafts and driveline parts, such as propeller shafts and axle-related assemblies. These are used in rear-wheel-drive and all-wheel-drive light-duty, commercial, and off-highway vehicles.
   
• GKN Automotive produces automotive drive shafts, including sideshafts and propeller shafts. These are used in passenger cars, SUVs, and commercial vehicles, supporting front, rear, and all-wheel-drive systems for internal combustion, hybrid, and electric vehicles.
   
• IFA makes automotive drive shafts and constant velocity joint assemblies. They supply sideshafts and driveline parts for passenger cars and light commercial vehicles, supporting front-wheel, rear-wheel, and all-wheel-drive systems.
   
• JTEKT provides automotive drive shafts and driveline parts, including constant velocity joint-based shafts. These are used for torque transmission in front-wheel-drive and all-wheel-drive passenger cars and light commercial vehicles.
   
• Nexteer Automotive produces automotive drive shafts and half-shaft assemblies. These are integrated with steering and driveline systems to transfer torque from differentials to wheels in front-wheel-drive and all-wheel-drive passenger vehicles.
   
• NTN makes automotive drive shafts and constant velocity joint assemblies. These are designed for passenger and commercial vehicles to transmit torque from the differential to the wheels in front-wheel, rear-wheel, and all-wheel-drive systems.
   

Automotive Drive Shaft Market Companies

Major players operating in the automotive drive shaft industry are:

• American Axle & Manufacturing
• Dana
• GKN Automotive
• Hyundai WIA
• IFA
• JTEKT
• Neapco
• Nexteer Automotive
• NTN
• Wanxiang Qianchao
   
• American Axle & Manufacturing makes drive shafts that work with axle and driveline systems to provide torque-transfer solutions for rear-wheel and all-wheel-drive vehicles around the world.
   
• Dana offers a wide range of driveline products, combining drive shafts with axles and components for light-duty, commercial, and electric vehicles.
   
• GKN Automotive uses its experience in making sideshafts and propshafts to provide drive shafts for internal combustion, hybrid, and electric vehicles worldwide.
   
• Hyundai WIA works closely with OEMs to produce and integrate drive shafts efficiently for passenger and commercial vehicles.
   
• IFA focuses on constant velocity joint-based drive shafts, ensuring accurate torque transfer for front-wheel and all-wheel-drive vehicles.
   
• JTEKT designs durable and efficient drive shafts for advanced front-wheel and all-wheel-drive systems.
   
• Neapco makes custom propeller shafts for rear-wheel and all-wheel-drive light trucks, SUVs, and commercial vehicles.
   
• Nexteer Automotive combines drive shafts with steering systems to improve efficiency and torque transfer in passenger vehicles.
   
• NTN uses its expertise in bearings and constant velocity joints to make durable drive shafts for passenger and commercial vehicles.
   
• Wanxiang Qianchao uses its large manufacturing capacity and regional networks to provide affordable drive shafts, especially in China.
   

Automotive Drive Shaft Industry News

• In September 2025, Shaftec launched a new product called the Axle Shaft. These shafts transfer power from the transmission to the wheels. Also known as Half Shafts, each axle has two shafts (four in total for a 4WD), and they evenly distribute power from the transaxle to the wheels.
   
• In July 2025, the UK government announced major support for Dana UK Axle Ltd, a global leader in drivetrain and e-Propulsion systems. This support will help increase the production of fully electric products at Dana’s Witton plant in Birmingham, showing the UK’s commitment to zero-emission vehicle manufacturing.
   
• In June 2025, American Axle & Manufacturing signed a deal with Scout Motors to supply front electric drive units (EDUs) and rear e-Beam axles. These parts will be used in the upcoming electric Traveler SUV and Terra pickup truck.
   
• In October 2024, JTEKT opened a new automotive parts manufacturing plant in India under JTEKT INDIA LIMITED. This is the company’s eighth plant in India and is part of its plan to grow with the Indian automobile market.
   

The automotive drive shaft market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and volume (units) from 2022 to 2035, for the following segments:

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Market, By Shaft

• Single-Piece Drive Shaft
• Two-Piece Drive Shaft
• Slip-in-Tube Drive Shaft

Market, By Position

• Front Axle Drive Shaft
• Rear Axle Drive Shaft

Market, By Design Structure

• Hollow Drive Shaft
• Rigid/Solid Drive Shaft

Market, By Material

• Steel
• Aluminum
• Carbon Fiber

Market, By Vehicle

• Passenger cars
  • SUV
  • Sedan
  • Hatchback
• Commercial vehicles
  • LCV
  • MCV
  • HCV
• Two wheelers

Market, By Propulsion

• Internal Combustion Engine (ICE)
• EV & Hybrid
  • Battery Electric Vehicle (BEV)
  • Hybrid Electric Vehicle (HEV)
  • Plug-in Hybrid Electric Vehicle (PHEV)

Market, By Sales Channel

• Original Equipment Manufacturer (OEM)
• Aftermarket

The above information is provided for the following regions and countries:

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Czech Republic
  • Belgium
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Singapore
  • Malaysia
  • Indonesia
  • Vietnam
  • Thailand
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
• MEA
  • South Africa
  • Saudi Arabia
  • UAE